Use the Following to Answer Questions 26-28

Multiple Choice

Use the following to answer questions 26-28:
Table 12.16
-(Table 12.16) The payoffs represent profits measured in thousands of dollars. In this infinitely repeated game, Firm A and Firm B are both using grim trigger strategies; they agree to charge a high price in period 1. If Firm A has a change of heart and decides not to charge a high price in period 1, what is Firm A's expected payoff from cheating? Assume that d = 0.9.

A) $165,000
B) $2 million
C) $315,000
D) $580,000